The Hindu Business Line : Asian Paints net rises 39% on buoyant demand

Mumbai, Oct 19 Asian Paints has reported a 39.6 per cent jump in net profit to Rs 108.4 crore, on a standalone basis, for the quarter ended September 30, against Rs77.6 crore logged in the corresponding period last year.

Net sales increased by 13.5 per cent to Rs 891.2 crore as against Rs 784.9 crore.

The board of directors has recommended an interim dividend of Rs 6.50 per share.

“All business units of the company registered good growth.

“Demand conditions continue to remain buoyant for the domestic business with all regions and segments recording growth. Lower raw material prices had a favourable impact on operating margins for the domestic business. The international business unit recorded good growth with an impressive performance by the West Asia and South Asia regions,” said Mr Ashwin Dani, Vice-Chairman & Managing Director, Asian Paints Ltd.

Outlook

In decorative paints, emphasis would be on driving top-line growth. Demand is expected to be good in Q3 due to late Diwali. Hence, growth in December and March end is expected to be higher than in September end. Similarly, demand for Industrial Coatings will continue to be good. The focus for international business is to grow top-line and improve profitability, Mr Dani said.

Asian Paints along with its subsidiaries has operations in 20 countries across the world and has 28 manufacturing facilities, servicing consumers in 65 countries through Berger International, SCIB Paints-Egypt, Asian Paints, Apco Coatings and Taubmans.

On a consolidated basis, net profit of the group increased by 37.6 per cent to Rs 113.9 crore from Rs 82.7 crore over the previous corresponding quarter. Sales & operating income rose by 13.5 per cent to Rs 1,133.2 crore from Rs 998.1 crore.

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